Why Is Rocket Lab Stock Gaining Today?

Rocket Lab USA, Inc. RKLB shares are trading higher on Wednesday following significant announcements in the satellite and aerospace sectors.

The company revealed that Airbus SE’s EADSY Airbus Constellation Satellites has selected Rocket Lab to provide high-efficiency, space-grade solar panels for 100 OneWeb Low Earth Orbit (LEO) satellites, designed to deliver low-latency global internet access to remote and underserved regions.

This is an extension of Rocket Lab’s ongoing partnership with Airbus, having previously delivered over 450 solar array shipsets for Airbus's first OneWeb satellite fleet in 2021.

Under the latest development, Rocket Lab will provide 200 solar panels, which will include carbon composite panel substrates, solar cells, and photovoltaic assemblies. These panels will be manufactured at Rocket Lab’s 150,000 square-foot space solar production facility in Albuquerque, New Mexico.

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The solar panels will supply the LEO constellation with around 80 kW of power, enough to operate 16 Hubble-sized space telescopes.

In addition to this development, Rocket Lab recently announced that it has signed a non-binding term sheet with certain lenders to acquire a controlling stake in Mynaric AG, a provider of laser communication technologies.

The deal, valued at an initial $75 million, will be paid in either cash or Rocket Lab stock. An additional earn-out of up to $75 million is tied to Mynaric's future revenue targets.

The acquisition is subject to regulatory approvals and Mynaric's ongoing restructuring process under German law. Once completed, the acquisition will further strengthen Rocket Lab's position in the space and communications sector.

According to Benzinga Pro, RKLB stock has gained over 310% in the past year. Investors can gain exposure to the stock via ARK Space Exploration & Innovation ETF ARKX.

Price Action: RKLB shares are trading higher by 6.34% to $18.95 premarket at last check Wednesday.

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